The country's apex bank, Reserve bank of India, had decided not to slash the key policy rates, dashing the hopes of auto industry and real estate developers.
According to them, with the given high interest rates, these two industries will continue to face slump.
Carmakers Maruti Suzuki, Hyundai, General Motors and real estate players Hiranandani Constructions and CHD Developers were in favor of lower rates of interest as it would push car and home loan growth.
On the matter, Mr. Mayank Pareek, Managing Executive Officer (Sales and Marketing), Maruti Suzuki India, said, "It (rates remaining unchanged) is a disappointment for the auto industry. For the car industry, it is very important that the interest rates come down as 70 per cent of sales are financed".
Viewing similar sentiments, Mr. Arvind Saxena , Director (Marketing and Sales), Hyundai Motor India Ltd said, "With the GDP growth rate coming down, industry was expecting RBI to ease interest rates, in that sense it is disappointing."
The major players in the realty industry also expressed the same views.
"Considering the plight of the productive sector and the lack of funds, especially in the real estate sector, a rate cut would have been a boon and fuelled growth," said Mr. Gaurav Mittal, Managing Director of CHD Developers.
Realty business major, Hiranandani Constructions Managing Director Niranjan Hiranandani elaborated, "There was a great expectation of a rate cut as a push was needed for the growth of the economy. There is a need of a government, especially the Finance Ministry, intervention and see that the growth does not slip into depression. We are having growth now, but if you don't push it, it may go into depression."
RBI, on its part, took the disappointing step to keep inflation under control instead of focusing just on growth by keeping the interest rates same as they were.
India Inc and retail developers were expecting at least 0.25 per cent reduction in interest rates.